The African Development
BankBank Group (AfDB) or Banque Africaine de
Développement (BAD) is a multilateral development finance
institution. The AfDB was founded in 1964 and comprises three
entities: The African Development Bank, the African Development Fund
and the
NigeriaNigeria Trust Fund. The AfDB’s mission is to fight poverty
and improve living conditions on the continent through promoting the
investment of public and private capital in projects and programs that
are likely to contribute to the economic and social development of the
region.[1] The AfDB is a financial provider to African governments and
private companies investing in the regional member countries (RMC).
While it was originally headquartered in Abidjan, Côte d'Ivoire, the
bank's headquarters moved to Tunis,
TunisiaTunisia in 2003, due to the
Ivorian civil war; before returning in September 2014.[2]

History[edit]
Following the end of the colonial period in Africa, a growing desire
for more unity within the continent led to the establishment of two
draft charters, one for the establishment of the Organisation of
African Unity (established in 1963, later replaced by the African
Union), and for a regional development bank.
A draft accord was submitted to top African officials, then to African
Ministers, before being cosigned by twenty-three African governments
on August 4th 1963, in the form of an agreement establishing the
African Development Bank. The agreement came into force on 10
September 1964. Although established officially in under the auspices
of the Economic Commission for Africa, the AfDB began operation in
1966.
Although originally only African countries were able to join the bank,
since 1982 it has allowed the entry of non-African countries as well.
During its forty years of operations, AfDB has financed 2,885
operations, for a total of $47.5 billion. In 2003, it received an AAA
rating from the major financial rating agencies and had a capital of
$32.043 billion.
Group entities[edit]
The African Development
BankBank Group has two other entities: the African
Development Fund (ADF) and the
NigeriaNigeria Trust Fund (NTF).
African Development Fund[edit]
Established in 1972, the African Development Fund started operations
in 1974."The African Development Fund"
United NationsUnited Nations Convention to
Combat Desertification (UNCCD) 2004], no longer available (2006) It
provides development finance on concessional terms to low-income RMCs
which are unable to borrow on the non-concessional terms of the AfDB.
In harmony with its lending strategy, poverty reduction is the main
aim of ADF activities. Twenty-four non-African countries along with
the AfDB constitute its current membership. The largest ADF
shareholder is the United Kingdom, with approximately 14% of the total
working shares followed by
United StatesUnited States with approximately 6.5
percent of the total voting shares, followed by
JapanJapan with
approximately 5.4 percent. The
Federal Reserve Bank of New YorkFederal Reserve Bank of New York was
designated as the depositor bank for the fund according to telegraphs
sent from the U.S. Embassy in
AbidjanAbidjan in 1976.[3]
The ADF’s general operations are decided by a Board of Directors,
six of which are appointed by the non-African member states and six
designated by the AfDB from among the bank's regional Executive
Directors.
The ADF’s sources are mainly contributions and periodic replacements
by non-African member states. The fund is usually replenished every
three years, unless member states decide otherwise. The total
donations, at the end of 1996, amounted to $12.58 billion. The ADF
lends at no interest rate, with an annual service charge of 0.75%, a
commitment fee of 0.5%, and a 50-year repayment period including a
10-year grace period. The tenth
United KingdomUnited Kingdom replenishment of the
ADF was in 2006.[4]
NigeriaNigeria Trust Fund[edit]
The
NigeriaNigeria Trust Fund (NTF) was established in 1976 by the Nigerian
government with an initial capital of $80 million. The NTF is aimed at
assisting in the development efforts of the poorest AfDB members.
The NTF uses its resources to provide financing for projects of
national or regional importance which further the economic and social
development of the low-income RMCs whose economic and social
conditions require financing on non-conventional terms. In 1996, the
NTF had a total resource base of $432 million. It lends at a 4%
interest rate with a 25-year repayment period, including a five-year
grace period.[5]
Management and control[edit]
The AfDB is controlled by a Board of Executive Directors, made up of
representatives of its member countries. The voting power on the Board
is split according to the size of each member's share, currently
60%-40% between African (or "regional") countries and
“non-regional” member countries (“donors”). The largest
African Development
BankBank shareholder is
NigeriaNigeria with nearly 9 percent
of the vote. All member countries of the AfDB are represented on the
AfDB Board of Executive Directors.
Dr. Akinwumi Ayodeji Adesina is the 8th elected [1] President of the
African Development
BankBank Group, having taken the oath of office on
September 1, 2015. He chairs the Boards of both the African
Development
BankBank and the African Development Fund. Dr. Adesina served
as Nigeria’s Minister of Agriculture and Rural Development from 2011
to 2015.
Member governments are officially represented at the AfDB by their
Minister of Finance, Planning or Cooperation who sits on the AfDB
Board of Governors. The AfDB Governors meet once a year (at the Annual
Meetings of the AfDB each May) to take major decisions about the
institution’s leadership, strategic directions and governing bodies.
The Governors typically appoint a representative from their country to
serve in the offices of the AfDB’s Board of Executive Directors.
Day-to-day decisions about which loans and grants should be approved
and what policies should guide the AfDB’s work are taken by the
Board of Executive Directors. Each member country is represented on
the Board, but their voting power and influence differs depending on
the amount of money they contribute to the AfDB.
Unit of Account[edit]

The African Development
BankBank is using a Unit of Account which is
registered as XUA as
ISO 4217ISO 4217 standard currency code. It is not
exchanged directly by individuals, it is used for accounting between
state members.[6]
Functions[edit]
The primary function of AfDB is making loans and equity investments
for the socio-economic advancement of the RMC. Second, the bank
provides technical assistance for development projects and programs.
Third, it promotes investment of public and private capital for
development. Fourth, the bank assists in organizing the development
policies of RMCs. The AfDB is also required to give special attention
to national and multinational projects which are needed to promote
regional integration.[7]
(i) Mobilizing financial resources from the Government or the foreign
financial institutions with; (ii) A view to lending the money for
development of specific sectors of the economy
Status[edit]
The ADB promotes economic development and social progress of its RMCs
in Africa and the bank commits approximately 3 billion dollars
annually to African countries. Its relatively small lending and
tendency to follow in the footsteps of more prominent public
institutions like the
WorldWorld Bank, implies that the African Development
BankBank has been receiving little interest from civil society
organizations as well as academia.
AfDB emphasizes the role of women along with education reforms, and
lent its support to key initiatives such as debt alleviation for
Heavily Indebted Poor CountriesHeavily Indebted Poor Countries and the New Partnership for Africa's
Development (NEPAD).
The
BankBank is currently based in Abidjan,
Côte d'IvoireCôte d'Ivoire again. It
employs approximately 1,865 employees as of 2016, and has 80 members:
54 countries in Africa and 26 American, European, and Asian countries.
Recent trends and directions[edit]
One of emerging views, repeatedly cited by the AfDB’s Board of
Directors and management, is that the AfDB should be more
“selective” and “country-focused” in its operations. Though
this policy has still to be clearly defined, it appears to be driving
certain lending priorities.
The infrastructure sector, including power supply, water and
sanitation, transport and communications, has traditionally received
the largest share of AfDB lending. This focus was re-affirmed in the
AfDB’s 2003-2007 Strategic Plan, which identified infrastructure as
a priority area for AfDB lending. In 2005, the AfDB approved 23
infrastructure projects for approximately $982 million, which totaled
40 percent of AfDB approvals that year. Given the increased attention
to infrastructure development in Africa from donors and borrowers, it
is likely that AfDB’s infrastructure lending will increase
significantly in the coming years. In 2007, infrastructure operations
accounted for approximately 60 percent of the bank's portfolio.
Regional integrationRegional integration infrastructure projects will be a key part of the
AfDB’s future business. According to the AfDB’s 2005 Annual
Report, regional economic blocs will make Africa “more competitive
in the global market”, while transport and power interconnections
between smaller African economies will help create larger markets in
the continent. The AfDB’s member countries claim that AfDB, as a
multilateral institution, is particularly suited to support regional
integration projects.
The AfDB has been designated the lead agency to facilitate "NEPAD
infrastructure initiatives", which are regional integration projects
led by African
Regional Economic Communities (RECs). Additionally, the
AfDB hosts the Infrastructure Consortium for Africa (ICA). The ICA was
established by G8 countries to coordinate and encourage infrastructure
development in Africa, focusing on regional infrastructure development
in particular. The AfDB helps to prepare projects so they may obtain
financing from others sources through an initiative called the
Infrastructure Project Preparation Facility (IPPF). So even if the
AfDB is not directly involved in financing a particular infrastructure
project, it may have helped to make it possible.
Another key area of concentration of the AfDB’s support of RMCs is
the fight against HIV/AIDS. The AfDB has five policies towards
securing Africa's future through health funding:

Institutional capacity building through assistance of policy/strategy
formulation and implementation
Human capital development to create an environment for the operation
of national
AIDSAIDS strategies through training and technical assistance
support
HIV/
AIDSAIDS multi-sectoral responses with emphasis on prevention and
control interventions that include IEC (Information, Education and
Communication), STI (sexually transmitted infections) control, VCT
(voluntary counselling and testing), infrastructure support for the
establishment of laboratories and blood transfusion facilities, and
provision of equipment and supplies, including antiretroviral drugs
Advocacy through participation in international and regional forums to
raise political commitment and leadership towards a collaborative
effort in the fight against the pandemic among RMCs and development
partners
Partnership development with a view of forging new alliances and
revitalizing existing collaboration to cover critical development
concerns such as HIV/
AIDSAIDS and to bringing partnership activities
within the framework of the bank's vision[8]

To date, the bank's contribution in the fight against HIV/
AIDSAIDS is
estimated at over UA 500 million. The bank is among the initiating
partners of "
AIDSAIDS in Africa – Scenarios for the future," a project
whose outcome will enable governments and development partners alike
to make strategic choices of current and future development paths and
define their activities accordingly in order to face the challenges
posed by HIV/AIDS.
Energy projects are likely to become a more important area of the
AfDB’s infrastructure work, given the lack of access to energy
services across Africa and continued high oil prices affecting
oil-importing countries. It is not clear if the AfDB’s role in the
energy sector will prioritize energy projects for domestic consumption
or for export, although the AfDB has supported both in the past. The
AfDB is currently drafting an energy policy and developing its
contribution to the G8-mandated Clean Energy Investment Framework.
Although there is no official statement or consensus to this effect,
AfDB lending for agriculture, (non-infrastructure) rural development
and social sectors, such as health and education, is reportedly likely
to decrease over the coming years.
Prospects[edit]
The AfDB's financial standing has been restored from the near collapse
of 1995, but its operational credibility remains a work-in-progress. A
working group convened by the Center for Global Development, an
independent Washington think tank, released a report in September 2006
that offered six recommendations for Bank's president and board of
directors on broad principles to guide the Bank’s renewal. The
report contains six recommendations for management and shareholders as
they address the urgent task of reforming Africa’s development bank.
Prominent among the recommendations is a strong focus on
infrastructure.
While the AfDB’s lending had not expanded significantly in recent
years, 2006 figures indicate that things may be changing. Between 2005
and 2006, the AfDB’s lending activities increased by more than 30
percent to $3.4 billion. Over the same period, private sector
operations doubled in value. The AfDB has specific mandates from the
New Partnership for Africa’s Development (NEPAD) and other
international organizations to take the lead amongst financial and
development institutions in areas such as infrastructure, regional
integration, and banking and financial standards in Africa. These
mandates have also increased the AfDB’s profile in the media. The
increased international emphasis on Africa’s development needs in
recent years (for example, surrounding the 2005 Gleneagles G8 Summit),
and on the importance of infrastructure investment in Africa, has
highlighted the role of the AfDB.
Some research has indicated that a high percentage of respondents in
African countries has a marked preference for additional aid from the
African Development Bank, despite the fact its relatively low rating
against most of the aid effectiveness criteria found to be important
by donor recipients.[9] This suggests that donor recipients in Africa
views on the ‘multilateral donor of choice’ are informed by
additional aid effectiveness criteria that are not commonly identified
or reported against, though exactly what those criteria have not been
discussed.
In general, whereas there has been progress at all levels with regard
to democracy, growth and restoring the macro-economic balances in
Africa over the past fifteen years, half of sub-Saharan Africa lives
on under one dollar a day, and
AIDSAIDS is threatening the social fabric
of the continent. The studies conducted by various organizations
(including the African Development
BankBank and the
WorldWorld Bank) show that,
with the exception of northern and southern Africa, the United Nations
Millennium Development GoalsMillennium Development Goals (reducing by half the number of persons
living in poverty and without access to potable water by 2015) will in
most cases not be attained. Nevertheless, these same studies indicate
that the majority of the African countries can make notable progress
to these ends.
African Development
BankBank annual conferences[edit]
African Development Bank's(AfDB) 4th annual conference outside Africa
held in
IndiaIndia (Gandhinagar, Gujarat) in May 22-26th 2017 at an event
inaugurated by India's Prime Minister Narendra Modi. Previous
conferences outside Africa were in Spain, China, Portugal.
Membership[edit]

African Economic Outlook is published annually by the OECD Development
Centre and the African Development Bank.
African, Caribbean and Pacific Group of States
Asian Development Bank
Asian Infrastructure Investment Bank
European Investment Bank
Caribbean Development Bank
CAF – Development
BankBank of Latin America
Islamic Development Bank

Africa portal
Sustainable development portal

References[edit]

^ Retrieved on 2012, November 15 from Archived January 21, 2013, at
the Wayback Machine.
^ "Flag-raising ceremony marks AfDB's return to its official
headquarters in Côte d'Ivoire". AfDB. 8 September 2014. Retrieved 18
March 2015.
^ "Unclassified wire to U.S.-
AbidjanAbidjan Embassy". US Department of State.
Retrieved April 22, 2013.
^ "The African Development Bank: Tenth Replenishment of the African
Development Fund, Order 2006" Statutory Instrument 2006 No. 2327,
Government of the
United KingdomUnited Kingdom Archived May 2, 2007, at the Wayback
Machine. ISBN 0-11-075060-8
^ African Development
BankBank Group, (2005), about us, Group entities
Retrieved on 2005 from
http://www.afdb.org/portal/page_pageid=313,165673&_dad=portal&_schema=PORTAL[permanent
dead link]
^ "Amendment of
ISO 4217ISO 4217 on 07 april 2011" (PDF). Retrieved 14 June
2014.
^
BankBank Information Centre, USA, (2005, July 27), African Development
BankBank Retrieved on 2005 from, July 27, from "Archived copy". Archived
from the original on 2006-05-01. Retrieved 2006-04-28.
^ African Development
BankBank Group,(2006), Topics, HIV/
AIDSAIDS from
http://www.afdb.org/portal/page?_pageid=473,970125&_dad=portal&_schema=PORTAL
Archived 2007-02-10 at the Wayback Machine.
^ Cecilie Wathne and Edward Hedger 2010. What does an effective
multilateral donor look like? London: Overseas Development Institute
^
http://www.afdb.org/fileadmin/uploads/afdb/Documents/Boards-Documents/statement_of_voting_power_as_at_31_december_2014.pdf
DISTRIBUTION OF VOTING POWER BY EXECUTIVE DIRECTOR STATEMENT OF VOTING
POWER AS AT 31 DECEMBER 2014
^ "Development Business". www.devbusiness.com. Retrieved 18 March
2018.

External links[edit]

Wikimedia Commons has media related to African Development Bank.

BankBank Information Center
African Development
BankBank home page
African Development
BankBank page for African Development Fund
African Development
BankBank page for
NigeriaNigeria Trust Fund
Regional Development Banks: Stepping Out of the Shadows - The African
Development Bank
Past Presidents of the African Development Bank
Building Africa's Development Bank: Six Recommendations for the AfDB
and its Shareholders